Keva and the Tax Administration have reached a solution regarding pensions that Keva inadvertently paid prematurely. Keva’s local government pension recipients need take no action as a result of the error, which will be remedied so that pensioners incur no tax implications.
In practice, this means that local government pension recipients will not see any transaction in their bank accounts on the original pension payment date, 4 January 2021. Keva’s payment system will technically adjust the wrong payment made in December to a pension paid in 2021.
This measure means that the wrong payment made in December will not result in additional tax consequences in taxation for 2020 and 2021. Keva will send a letter about this to all pensioners who received the wrong payment.
Customers do not need to contact Keva or the Tax Administration. Kela similarly communicated that the wrong payment of the pension would not cause problems for recipients of Kela benefits.
Recipients who have already returned the pension will receive it on the original pension payment date, 4 January 2021. Based on current information, this affects only a few dozen people.
”Keva apologises for any inconvenience caused to pension recipients by premature pension payment. Each pension recipient will receive exactly as much pension as they are supposed to receive, it’s just that on this occasion the payment date differed from the original one,” says Deputy CEO Kimmo Mikander.
The following date for the payment of local government pensions is 3 February 2021.
Due to human error, Keva inadvertently paid the January pensions of around 400,000 local government pension recipients prematurely on Thursday 17 December 2020, whereas the pensions should not have been in the recipients’ accounts until Monday 4 January 2021.